23 Hrs
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صحيفة الساعة 24
Heseni Bey: Economy Tied to Oil and Gas Revenues
Businessman Hosni Bey concluded that the Libyan government's issuance of bonds worth 10 billion dinars requires official confirmation regarding their value and terms. However, he indicated that borrowing can be a legitimate financial tool if used to fund productive projects that generate returns exceeding the cost of debt. He believes that borrowing to finance current expenditures is unwise and increases interest burdens. He explained that the cost of interest payments would reach 600 million dinars annually if the interest rate is 6%. The main economic issue, he said, is not a shortage of dinars but rather excessive liquidity compared to the economy’s capacity for production and revenue. He emphasized the need to establish clear rules for public spending instead of resorting to new financing tools, warning that employing debt to finance unrestrained deficits increases inflationary pressures and creates additional burdens for the future.
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